Chevron on Monday signed a non-binding agreement with Tohoku Electric Power Co. (Tohoku) to deliver liquefied natural gas (LNG) from the Chevron-operated Wheatstone natural gas project in Australia. The company will deliver up to 1 million tpy (MTPA) of LNG to Tohoku for up to 20 years.

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Chevron on Monday announced a non-binding agreement with
Japan-based Tohoku Electric Power Co. (Tohoku) to deliver
liquefied natural gas (LNG) from the Chevron-operated
Wheatstone natural gas project in Australia.

Financial terms were not disclosed.

Under the agreement, Chevron, together with Apache Energy
and Kuwait Foreign Petroleum Exploration Co. (KUFPEC), is
expected to deliver up to 1 million tpy (MTPA) of LNG to Tohoku
for up to 20 years.

Joe Geagea, president of Chevrons gas and midstream
segment, said he welcomed Tohoku as a major customer of the
Wheatstone project.

We are pleased Tohoku has agreed to source a
significant portion of its annual energy supply requirements
from the Wheatstone Project, which further highlights
customers confidence in Wheatstone as a safe, reliable
energy source, he said.

Roy Krzywosinski, managing director of Chevron Australia,
noted that more than 80% of Chevrons equity LNG from
Wheatstone is now covered under long-term off-take agreements
with customers in Asia.

This off-take agreement for Wheatstone demonstrates
our Australian LNG projects are in the right geographic
location at the right time to meet Asias rapidly growing
demand for cleaner burning natural gas, he said.

The Chevron-operated Wheatstone project is projected to
become one of Australia's largest resource projects.

Located at Ashburton North, 7.5 miles (12 kilometers) west
of Onslow in Western Australia, the foundation phase of the
project will consist of two liquefied natural gas trains with a
combined capacity of 8.9 million tpy and a domestic gas
plant.

The onshore foundation project is a joint venture between
the Australian subsidiaries of Chevron (operator 72.14%),
Apache (13%), KUFPEC (7%), Shell (6.4%) and Kyushu Electric
(1.46%).

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